The growth of the global biotechnology industry remains challenging with tight funding straining the traditional drug development model despite the industry’s financial performance stabilising.
Ernst & Young said in its “Beyond Borders: Global Biotechnology Report 2012” that the industry globally showed a second straight year of increasingly stable financial performance in 2011.
“For the first time since the start of the global financial crisis, the established biotech markets registered more than 10% revenue growth,” it said in a statement yesterday.
“However, longer-term sustainability remains challenging, with the traditional funding-and-innovation model for pre-commercial biotech firms under unprecedented strain and the industry’s efforts to date to ‘do more with less’ uncertain to deliver significant productivity gains,” it addded.
Ernst & Young’s Global Life Sciences Leader Glen Giovannetti said: “In this capital-constrained environment, the inefficiency and duplication of the drug research and development (R&D) paradigm is an indulgence we can no longer afford